Photos courtsey. Kagera Regional Women MP, Oliver Semuguruka
. A man whose wife ran away because of failing to pay a loan. Photo coutsey
A man whose wife ran away because of failing to pay a loan. Photo: Courtesy
Lawmaker in Tanzania saves family from debt crisis which forced woman to flee
By Mutayoba Arbogast
Women in Tanzania have been urged not to take exploitative interest rate loans, often dubbed as “loan sharks” or “mikopo kausha damu,” which continues to take a heavy toll on them.
The call was recently made by Kagera Regional Women’s MP, Oliver Semuguruka, after she intervened to pay off the debt the familly had failed to clear.
The high interest rates and stringent repayment terms are pushing borrowers into financial ruin, with many losing their household possessions as collateral for unpaid debts.
In one heartbreaking case from Mtwivila village in Iringa, a woman, fearing the loss of all her family’s belongings due to an unpaid loan, fled her home, leaving behind her husband and two children.
Her husband, Athanas Muhagila, shared his painful story with the press. He had initially advised his wife to borrow between Sh 400,000 and 500,000, which they could afford to repay at a rate of Sh 15,000 per week. However, when she went to the lender, she was persuaded to take a larger loan amounting to Sh 1.2 million, with a weekly repayment of Sh 38,000—an amount the family could never manage.“Our original decision to borrow Sh 400,000 to 500,000 was reasonable.
We could have paid back Sh 15,000 a week. But with this new repayment plan of Sh 38,000 per week, we couldn’t keep up. They have already taken our television, music system, and other household items. All that’s left are the small things—our couch and cooking pots,” Muhagila lamented. “When I begged them to have mercy and cancel the debt, they coldly replied that only the death of the borrower could erase the debt.”
Muhagila, who supports his family through small businesses, including stone splitting, has been struggling to make ends meet. He and his two young sons often have to settle for a single meal a day and are unable to look for better work opportunities because there is no one to care for the children.
Upon hearing about the distressing situation, Kagera Regional Women’s MP, Oliver Semuguruka, was deeply moved by the story of his wife who had fled to avoid the crippling debt. Semuguruka took swift action, deciding to pay off the loan and alleviate the family’s hardship.“As a mother and a politician, I couldn’t bear to see this family suffering.
I knew something had to be done,” Semuguruka said. “I sent someone to help the husband, Athanas, and they went together to the lending institution to review the loan details. After calculations, they found that the outstanding debt was Sh 513,900, which I paid directly into the lender’s bank account.”
Semuguruka, who took the opportunity to highlight the risks of borrowing without proper planning, urging women to seek loans with clear business plans and sound financial education. She stressed that taking out loans with high weekly repayments often leads to dire consequences, including financial collapse and family breakdown.“ Women need to be cautious about where they borrow money. Without proper planning, loans can quickly become a burden that destroys families.
I advise women to explore options like the new 10% loan program for groups of women, youth, and people with disabilities. These loans are easier to repay and provide an opportunity to generate income,” she advised.The 10% loan program, which was introduced in 1993 to support marginalized groups, was expanded in 2018 under the Local Government Financial Act (Cap 290, Sec. 37A) to offer interest-free loans to youth, women, and people with disabilities.
This initiative aims to help lift families out of poverty and provide a more sustainable path to financial empowerment.Semuguruka’s intervention not only saved a family from financial devastation but also highlighted the importance of responsible lending and the need for financial literacy, particularly for women and marginalized groups.
